Final answer:
Manufacturing overhead is a temporary account used in Business to record actual indirect production costs during the accounting period.
Step-by-step explanation:
Manufacturing overhead is an accounting term used in Business. It refers to the costs incurred during the production process that cannot be directly attributed to a specific unit of production. These costs include items such as indirect materials, indirect labor, and factory utilities. One of the temporary accounts used in accounting for manufacturing overhead is the Manufacturing Overhead account.
During the accounting period, actual indirect production costs are recorded as debits to the Manufacturing Overhead account. This allows for the accumulation of all indirect costs associated with manufacturing. At the end of the accounting period, the Manufacturing Overhead account is closed, and its balance is transferred to the Cost of Goods Sold or Finished Goods Inventory account.